Bharat Forge secures 950 acres in Andhra Pradesh for a major defence manufacturing complex through Agneyastra Energetics. The facility will produce explosives, ammunition, and propellants, boosting India’s self-reliance in defence.
PUNE / ANANTAPUR – In a significant move that bolsters India’s domestic defence production capabilities Bharat Forge Ltd. has announced that its step-down subsidiary Agneyastra Energetics Limited has secured a massive 949.65-acre land parcel in Madakasira, Andhra Pradesh. The land acquired through an agreement with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), will be developed into a comprehensive state-of-the-art defence manufacturing complex.
This strategic investment marks a major expansion for the Kalyani Group into the critical domain of energetics—the science of materials that contain and release chemical energy, such as propellants and explosives.
A Strategic Hub for “Make in India” Defence
The new Bharat Forge Andhra Pradesh defence manufacturing complex energetics facility is designed to be a cornerstone of India’s defence industrial ecosystem. The initial phase will focus on establishing advanced manufacturing units for:
- High Explosives Production:Â Creating the powerful chemical compounds used in warheads and demolition.
- Ammunition Filling:Â The precise process of assembling and filling various types of ammunition shells.
- Gun Propellant Manufacturing:Â Producing the specialized materials that propel projectiles from artillery and tank barrels.
Future phases of the complex are planned to be even more ambitious, with proposed capabilities for manufacturing energetics for rockets and missiles, components for space launch vehicles, and next-generation advanced energetic materials.
Aligning with National Security Goals
The establishment of this complex is perfectly aligned with the Indian government’s relentless push for self-reliance in defence manufacturing, often referred to as ‘Atmanirbhar Bharat’. By developing indigenous capacity to produce these critical and sensitive components, Bharat Forge is directly contributing to reducing the nation’s dependency on imports and strengthening its defence supply chain security.
Agneyastra Energetics was formed under Kalyani Strategic Systems Ltd (KSSL) a wholly-owned subsidiary of Bharat Forge dedicated to aerospace and defence. This structure highlights the group’s focused strategy to become a fully integrated defence solutions provider.
Financial Context: A Strategic Long-Term Bet
The announcement of this long-term strategic investment comes alongside Bharat Forge’s quarterly financial results which showed a dip in performance.
For Q1, the company reported a 10% year-on-year decline in standalone revenue to ₹2,105 crore primarily due to weaker export markets. EBITDA also saw a decrease of 12.4% to ₹571 crore, with margins contracting slightly.
This contrast underscores a key point: the Bharat Forge Andhra Pradesh defence manufacturing complex energetics project is not a reaction to short-term financial cycles but a calculated, forward-looking investment. It is based on the long-term growth narrative of India’s defence sector and the government’s strategic need for domestic manufacturing of critical defence materials.
About Bharat Forge
Bharat Forge Limited, headquartered in Pune, is a global leader in technology-led manufacturing. Known for its metallurgical expertise, the company produces high-performance, safety-critical components for a diverse set of industries including automotive, power, and oil & gas. Over the past decade, it has strategically pivoted to become a significant player in the defence and aerospace sectors, leveraging its engineering and forging prowess to cater to the needs of the Indian armed forces and global original equipment manufacturers (OEMs).
This new complex in Andhra Pradesh represents a bold leap into a new, high-value vertical, positioning the Kalyani Group at the very core of India’s defence manufacturing ambitions.
